Oil dips as prospects dim for U.S.-China trade deal

Oil dips as prospects dim for U.S.-China trade deal

Oil prices dipped on Wednesday as prospects for a trade deal between Washington and Beijing dimmed, weighing on the outlook for the global economy and energy demand.

U.S. President Donald Trump said on Wednesday that the two countries were close to finalizing a trade deal but were unable to provide a date or location for the signing, much to the dismay of investors.

Brent Crude futures inched down by 0.3% to $61.90 per barrel by 0124 GMT.

U.S. West Texas Intermediate crude went down 0.3% to $56.65.

The International Energy Agency speculated that global oil demand would grow by 1 million barrels per day on average in 2025 but may slow to an average of 100,000 bpd a year afterwards as fuel efficiency and electric vehicles increases.

Even as production growth in the United States slows from breakneck pace of recent years, the world’s top oil producer will still account for 85% of the increase in global oil production to 2030, and 30% for the increase in gas, the agency said.